An AI system in Walmart stores is now providing employees with guidance on selling products before it's too late.

• Walmart is testing an in-store AI system to guide associates on various matters, including the likelihood of bananas spoiling and the appropriate time to discount seasonal clothing.
• Reducing food and fashion waste can prevent millions of tons of unused items from ending up in landfills and save billions of dollars for Walmart.
• The big-box giant thinks AI will make quicker, data-informed decisions with employees.

The world's major retailers are responsible for massive food and retail waste, and AI is being considered as a potential solution to this issue.

An in-store artificial intelligence is being launched by the big-box giant to provide employees with advice on various topics, including banana ripening and seasonal fashion sales.

Walmart employees can use internally developed AI technology to scan produce like bananas and determine their ripeness. The digital dashboard, powered by generative AI, will then suggest what to do with the product, removing the need for human decision making when expert advice is lacking.

By providing AI to associates, they will be able to make informed decisions that minimize waste in stores, according to Swati Kirti, senior director of data science at Walmart International Tech.

If the analysis indicates that the best outcome for a particular item is to donate it, the AI may advise the employee to do a price change or send the product back to a vendor if that's part of the policy for that item.

Kirti stated that this AI tool essentially relieves associates of decision-making and provides them with precise guidance on how to handle the product at a specific time.

The scanner can also be used on seasonal items like clothing.

"Kirti emphasized the importance of making quick decisions to reduce apparel waste, particularly unsold items or returns that occur after the season has passed."

The program will be piloted in Canada soon, with the hope of expanding it to other countries in the near future. The U.S. throws away about 60 million tons of food each year, or about 40% of the country's food supply, according to RTS. It's also the single largest item taking up space in U.S. landfills, accounting for about 22% of municipal solid waste. A 2018 UCLA Anderson report found that Walmart produced 3.5 million tons of food waste, or about $2.6 trillion in annual cost and a $7.4 billion loss for Walmart's bottom line. The company has a goal of eliminating operational waste in the United States, Canada and Mexico by 2025. About 94% of its total global operational waste is produced by these three countries. U.S. residents also discard about 11.3 million tons of clothing waste each year, according to Earth.org.

Our AI-powered waste management system helps reduce our environmental impact, freeing up societal resources and lowering our own operating costs, as stated by Sravana Karnati, senior vice president and chief technology officer for Walmart International Technology, Walmart Global Tech.

Walmart has introduced programs such as "Take Back" that enables customers to send their used and unwanted clothing to the company, and its charitable arm, the Walmart Foundation, collaborates with Goodwill to recycle unsellable textiles.

Several startups, including Winnow and Shelf Engine, are using AI to tackle in-store waste, helping businesses optimize their consumption and purchasing by monitoring waste bins and SKUs with AI.

"Dana Gunders, the executive director of ReFED, stated that there is no easy fix for food waste. Although ReFED has collaborated with Walmart for several years on finding solutions, reducing waste requires assistance from the entire food system. AI is increasingly being used to forecast demand, reduce prices on food that may spoil, and now Walmart is introducing a new solution."

Homer Swei, senior vice president for healthy living science at nonprofit EWG, stated that retailers, including Walmart, have the power to minimize their environmental footprint and that of their brands and supply chains. Retailers are taking various approaches to build sustainable practices into their core business areas, such as Amazon reducing its shipping packaging and Target aiming for zero waste in the U.S. by 2030.

"Swei emphasized the importance of everyone contributing to protecting the environment, including consumers, the brands they purchase from, the suppliers they use, and the retailers where they buy their products or services."

"By leveraging AI-informed decision-making, Walmart can reduce costs and pass on savings to customers, while also investing in its own expansion plans," Karnati stated.